Amsterdam, the Netherlands/Tokyo,
Japan, September 5, 2002 - Royal Philips Electronics
(AEX: PHI, NYSE:PHG) and Sony Corporation today announced
that they will jointly develop a new near field radio-frequency
communication technology, 'Near Field Communication' (NFC).
The technology enables short-range communication networks
between consumer devices incorporating an NFC interface,
and is set to greatly improve the way consumers access data
and services wirelessly.

Wireless NFC technology will operate on 13.56 MHz and allow
for the transfer of any kind of data between NFC enabled
devices such as mobile phones, digital cameras and PDA's
as well as to PC's, laptops, game consoles or PC Peripherals,
across a distance of up to twenty centimeters and aiming
at speeds fast enough to transfer high quality images. At
communication speed up to 212 kbit/s the NFC technology
is fully compliant to both Philips' existing MifareTM
and Sony's FeliCaTM contactless
smartcard technologies.

The aim is to build a ubiquitous open infrastructure of
NFC-compliant devices which effectively incorporate smart-key
and smartcard reader functions, providing a convenient communication
method for services such as payment (including credit card),
ticketing, and accessing online entertainment content (e.g.
gaming) through the devices. This can be done simply by
holding devices or smartcards near each other. It is anticipated
that the technology will play a key role in allowing content
and service providers to offer various new ways of accessing
their services. The consumer's primary NFC device (e.g.
mobile phone or PDA) acts as a smart-key to gain access
to chosen services from any NFC device, anywhere, anytime.

"This cooperation between Philips and Sony marks a
breakthrough in establishing a new solution for an easy
communication network between consumer electronic devices,"
commented Mr. Yuki Nozoe, Corporate Executive Vice President,
Sony Corporation. "Together with Philips, we will study
a vast range of new applications for NFC, and we look forward
to welcoming other electronics and service companies in
support of the technology."

Karsten Ottenberg, General Manager of Philips Semiconductors'
Identification business, said: "This agreement will
revolutionize the way consumers access services and see
the penetration of identification chips move far beyond
smart cards, with NFC becoming a standard component of new
electronic devices, including those from Philips. It is
another demonstration of Philips' strengths in the area
of connectivity, and what our technologies can bring to
the consumer, at home, in the office, or on the move. With
the CD Philips and Sony demonstrated what their cooperation
can bring to the electronics industry - we look forward
to the success of this partnership."

Philips is already the global industry leader in contactless
smartcards through its Philips'MifareTM
technology, supplying some of the world's major transport
systems, and the banking sector, with supply to customers
such as Visa. Sony has a significant market position in
Hong Kong and Shenzhen (China), Singapore and Japan utilizing
Sony's FeliCaTM contactless
smartcard technology, mainly in the transportation and financial
sectors. As NFC is fully operable on both platforms, all
consumer devices containing NFC technology will be compatible.

Philips and Sony will promote the NFC technology as an open
standard in order to integrate it into consumer devices,
including those of other manufacturers in the CE, PC, automotive,
and other industries. The companies intend to explore new
applications together with relevant content and network
service providers.

About Sony
Sony Corporation is a leading manufacturer of audio, video,
communications and information technology products for the
consumer and professional markets. Its music, pictures and
computer entertainment operations make Sony one of the most
comprehensive entertainment companies in the world. Sony
recorded consolidated annual sales of over $57 billion for
the fiscal year ended March 31, 2002.
Sony's Home Page URL: http://www.sony.net/

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the
world's biggest electronics companies and Europe's largest,
with sales of EUR 32.3 billion in 2001. It is a global leader
in color television sets, lighting, electric shavers, medical
diagnostic imaging and patient monitoring, and one-chip
TV products. Its 184,000 employees in more than 60 countries
are active in the areas of lighting, consumer electronics,
domestic appliances, components, semiconductors, and medical
systems. Philips is quoted on the NYSE (symbol: PHG), London,
Frankfurt, Amsterdam and other stock exchanges. News from
Philips is located at www.philips.com/newscenter

Safe Harbor Statement
This document contains certain forward-looking statements
with respect to the financial condition, results of operations
and business of Philips and certain of the plans and objectives
of Philips with respect to these items. By their nature,
forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to,
levels of consumer and business spending in major economies,
changes in consumer tastes and preferences, the levels of
marketing and promotional expenditures by Philips and its
competitors, raw materials and employee costs, changes in
future exchange and interest rates (in particular, changes
in the euro and the US dollar can materially effect results),
tax rates and future business combinations, acquisitions
or dispositions and the rate of technical changes. Market
share estimates contained in this report are based on outside
sources such as specialized research institutes, industry
and dealer panels, etc. in combination with management estimates.